-LRB- CNN -RRB- -- Qantas has reached a settlement with engine-maker Rolls Royce over a 2010 incident that grounded its entire Airbus A380 fleet .

Rolls-Royce agreed to compensate the airline in a deal worth US $ 100 million , Qantas CEO Alan Joyce said at a news conference . The deal was signed Wednesday morning and the terms will be kept confidential , according to Joyce .

The settlement brings to an end the legal action between the two parties , Qantas said .

The failure of a Rolls-Royce engine in early November resulted in an emergency landing of a Qantas passenger plane at Singapore 's Changi Airport .

The flight , carrying 440 passengers and 26 crew , was Australia-bound from Singapore when a fire on the plane 's No. 2 engine not only caused half of the engine casing to fall off in flight , but it also damaged the aircraft 's electrical wiring .

Investigators blamed the fire on a potential manufacturing defect in the type of engine that caught fire -- a Trent 900 engine manufactured by Rolls-Royce .

The incident caused the airline to ground its six A380s for more than three weeks .

At Wednesday 's news conference , Joyce also updated the company 's financial outlook , forecasting annual profit before tax of between US $ 530 million to $ 580 million , despite a major impact from weather events and natural disasters .

The airline has lost an estimated $ 219 million due to the Japan earthquake and tsunami , Queensland floods , Cyclones Yasi and Carlos , and the Christchurch earthquake .

The Rolls-Royce settlement was included in the profit outlook .

Joyce addressed the struggle of Australia 's flagship carrier to turnaround its international business which has n't kept pace with competitors , alluding that major changes will be made later this year .

`` The task must be to transition a great airline into a great business , '' he said . A major announcement on the future of the international business will be made on August 24 .

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Rolls-Royce agrees to compensate Qantas $ 100 million

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The terms of the deal are confidential

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The failure of a Rolls-Royce engine in early November resulted in an emergency landing

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Engine failure causes Qantas to ground six A380s for more than three weeks